Realtorsmortgage

In previous decades people with high risk mortgage loans often left financial companies holding the keys when rates started to go up.

But according to a recent study by First American Real Estate Solutions, even if rates do start to climb this year, the number of defaults this time around is not likely to go much higher than $110 billion.

The study estimated 1.4 million of 7.7 million adjustable rate mortgages sold in 2004 and 2005 would be at risk of default. But even if that many households were to default, the financial fallout would be limited.

The reason: the US economy is so strong this time around, and so diversified that this amount represents only about one percent of total national homeowners’ equity, and it would be spread out over two or three years. So the economy would be more than able to absorb the losses.

**Factors driving continued Real Estate boom

While many real estate experts predict a slight slowdown in real estate and mortgage activity during 2006, most also see steady gains, with continued economic growth and well-balanced supply/demand ratio in the housing market.

Some of the factors driving the real estate market:

+ Continued low interest rates – Although rates climbed slightly in 2005, they are still at historic lows. Homes that were purchased over the last few years with interest-only and adjustable-rate mortgages will enter the refinancing market. Homeowners will refinance to take advantage of increased equity values, and to convert to fixed-rate mortgages as rates start to climb.

+ Internet Effect – The internet gives buyers the opportunity to search MLS listings without going through an agent or broker. Not only have consumers become better informed and better educated about opportunities, but the entire home-buying process now takes less time than just four or five years ago. This trend will continue to accelerate.

+ Healthy economy leads to more relocation – A vibrant economy and strong residential real estate activity drives commercial activity as well. And that usually leads to corporate relocations as people follow business and employment opportunities. That means increased real estate activity.

+ Generation X effect – As baby boomers begin retiring and moving out of the real estate buy and sell cycle, Generation Xers have taken their place with a vengeance. The incomes of Gen Xers are generally higher than the previous generation, and financing is easier to get, so they have been able to buy more expensive homes sooner than boomers did. Gen Xers now make up 47% of the total homeownership segment in the U.S., and have an especially large impact on downtown and suburban communities.

**Many UK mortgages not covered by life insurance

A recent report by Sainsbury’s Bank estimates that as many as 4.2 million people in the UK have mortgages that are not covered by life insurance. That means that as much as GBP217 billion worth of mortgages are open to be passed on to loved ones. This number has grown significantly over the last few years as the number of new mortgage approvals has grown.

Of course inheriting the debt associated with a property would be accompanied by ownership of the property itself. And with current prices on the rise, most people, even if forced to sell a property because they could not pay the mortgage, would not be as badly off as the report might suggest.

**UK borrowers opt for 2 year fixed mortgages

According to a recent survey of mortgage purchases in the UK, there was a significant shift in January towards 2 year fixed mortgages. In January 39 percent of borrowers chose this option compared to 27 per cent in December.

Interestingly enough, only 9 percent of buyers opted for a longer term fixed mortgage in January, compared to 16 percent in December. This was in spite of longer term mortgages (up to 10 years fixed rate) at less than 5 percent.

The popularity of a 2 year fixed mortgages suggests that buyers assume rates have bottomed out, at least in the medium term, but are not convinced they may not go down further two or three years from now.

If you are a loan officer or a mortgage broker and you are looking for a new and innovative way to market yourself and your products, you may want to consider using a personal blog.

You do not have to be a wizard with a computer, or have a background in rocket science to start up a blog.

The internet is loaded with blogging sites that allow you to set up a blogging site, literally within five minutes.

These sites are completely free and allow for you to pick your own web address and template. All you have to do is supply the postings, and allow for others to post their thoughts as well.

They will also allow for you to download a picture of yourself which is perfect for allowing your customers to identify with you, by putting a face with your name.

You can also add your blog address to your signature when you e-mail people. They can click on it and get a feel for you, and the benefits your products and services can offer them.

Dont forget about adding your blog site to your business cards on your next order.

The next time you are talking to someone, wether it is in person or on the phone, you can end the conversation by inviting them to visit your blog.

Blogging is a great way to market yourself and the benefits of your products. So make sure your blog is filled with interesting and beneficial topics for your customer.

If you are a mortgage broker or loan officer on the market for mortgage leads, your best bet for a quick turn around time on a loan is with the refinance leads.

Not to say that you cant have a quick urn around time with purchase leads, you can. But, as you well know, refinancing a persons home can be done in a relatively short amount of time.

Here is something to consider when shopping around for mortgage leads.

Look for the mortgage lead companies that sell their mortgage leads fresh or in real time.

It is basically pointless to purchase a refinance lead that is weeks or even days old.

Most likely the consumer is already working with another loan officer and is half way through the process.

Also, find out how the mortgage lead companies obtain their leads.

Look for the mortgage lead companies that obtain their leads through web sites they own and operate on their own.

Otherwise, they are obtaining them from third party companies and recycling them.

The last thing you want or need is a lead that has gone through the hands of half a dozen loan officers.

Remember, you work hard for your money, so be sure that when you invest with a mortgage lead company that you will be getting your moneys worth.

If you are a loan officer and you are new to the business, one thing you may be short on is leads.

Leads can be obtained in many ways. Through customer referrals, networking groups, family members, friends, etc.

However, for a new loan officer, you may need to jump start your business, and investing with a mortgage lead company may be the way to go.

You probably havent heard many good things about mortgage lead companies. However, there are some good ones out there. And if you take your time and do your research, you may just find the right one for you.

Here are a few things to avoid:

Avoid the mortgage lead companies that recycle their leads. Recycling means they sell them over and over again.

So, most likely these leads have gone through the hands of dozens of loan officers before reaching your desk, so steer clear.

Stay away from lead companies that buy their leads from third party companies than sell them to loan officers at a profit.

You never know how many times those third party companies sold those leads to other mortgage lead companies.

In the beginning, your budget may be a little bit tight, so look for lead companies that allow for a low minimum deposit.

Also, look for lead companies that obtain their leads through sites they own and operate on their own. This is always a good indication that the lead is of good quality.

And look for lead companies that sell real time mortgage leads, and/or sell them exclusively. When you buy your leads exclusively you can cut out your competition.

Real time leads are also known as fresh leads, so they are hot off the press once you receive them. With real time leads your closure ratio will be much higher and the return on your investment will be that much better. And why shouldnt it be? You work hard for your money.

If you are a loan officer or mortgage broker and you are considering purchasing leads, or you are disgusted with the leads you are currently receiving, you may want to consider looking into real time leads.

Real time leads are something to consider because they are hot leads. Meaning you will receive the lead within seconds of your prospect submitting their on-line form.

Another thing to know about real time leads is that you know that when you receive your lead, you know it will be of good quality.

Many lead companies sell recycled leads, or what is better known in the industry as junk leads.

Recycled leads move from one lead company to the other, being purchased at a discount, and than being sold to loan officers at a profit.

By the time a lead of this type ends up on a loan officers desk, it has already been passed through the hands of at least a dozen other loan officers.

The chances of closing a loan on a lead like this are slim to none.

When considering a lead company that deals with real time leads, be sure to do your research. Call the mortgage lead company and speak with someone in customer service.

Find out how hey obtain their leads. If they are not obtaining the leads from web sites they own and operate on their own, than most likely they are obtaining them from third party vendors. In this case, it would be in your best interest to move onto the next lead company.